China-based mining company Yanzhou Coal Mining has outlined plans to invest A$600m ($628m) to increase the output from its Australian coal assets.
The company expects to raise the coal production capacity in Australia to 50 million metric tons by 2017, up from 26 million tons recorded in 2012, reported The Wall Street Journal.
Commenting on the developments, Yanzhou chairman Li Weimin told the news agency that the company has set a conservative target for its planned expansion in Australia.
The demand in Asia is expected to pick up in two to three years, and high-quality coal from Australian mines can capture the growth, added Weimin.
Besides, the company is looking to export its Australian coal production to Asia markets such as China, Korea, Japan and Taiwan. The expansion proposal in the country comes after its $3.54bn acquisition of Australia’s Felix Resources alongside listing its subsidiary Yancoal Australia on Australian Stock Exchange in 2012.
The company is open to any acquisitions at the right price, noted Weimin.
Meanwhile, Yanzhou is also keen on listing Canadian potash assets in Toronto. The company noted that it needs capital for the development of the Canada project, and listing is one of the options.